Podcast File

How To Make Facebook Your Partner – Split-Testing Explained

Hey, podcast listener. I know you’re here because you want to learn the most up-to-date strategies to grow your business with the power of Facebook, Instagram, and Messenger. Well, I am holding a webinar coming up very soon on the 28th of March that you don’t want to miss out on. I only do this webinar 2-3 times a year at the most. In it, I’m going to be covering the social media strategy for brands in 2019 so you can take advantage of the power of Facebook to build your business. There’s an opportunity right now going on that you want to take advantage of. And, my obsession is to give you the tools that are working and that you know what’s not working anymore so you can also ride the wave with me along the way. Register right now. If you can actually just stop this podcast, put it on pause or bring it down while you register. You can go to manuelsuarez.com/webinar. And again, it’s going to be on the 28th of March at 3 pm eastern time. It’s going to be an hour and a half webinar but in it, I’m going to cover five strategies that you can utilize to explode your business now and take advantage of existing opportunities to get as much attention as possible at the lowest cost as possible. That is my obsession. 

If you guys want to register right now, go register before you listen to the rest of this podcast, manuelsuarez.com/webinar. If you’re listening to this podcast after the 28th of March 2019, there’s going to be a replay of this webinar only for a few days. You can actually go to that same link and it’s going to redirect you to the webinar replay. But again, it’s better to watch it live, it’s better to be there with me live so I can answer your questions at the end and we can actually cover more in detail while you are there with me, live in this webinar. It’s going to be a limited seating as usual. I don’t know if you know about this platform but they have limited seating and we’re not going to be able to fit everybody in it because there’s a lot of interest in joining this webinar. Go and register right now. Go to manuelsuarez.com/webinar. You’re going to get some email reminders, you’re going to get a redirect to Messenger so you can also be notified on Messenger of this webinar and be part of this crazy wave that we have in front of us because I know that’s why you’re here. You’re here listening to this podcast because you want to understand Facebook advertising and you want to know what works and what doesn’t work on the power of this incredible platform that I don’t know if you saw but about a month ago, they reported their earnings for the last quarter and their explosion is continuing to happen and you want to be able to take advantage of it. I am doing that every single day and I want to show you exactly what I am doing because what I am doing works, and it works really well. Go register right now, manuelsuarez.com/webinar. I’ll see you there. 

 

LET’S TALK ABOUT SPLIT-TESTING

All right. Welcome to another Facebook Marketing Ninja Podcast. Today, we have a very, very practical subject that I want you guys to all pay very close attention to. It’s very important because we need to figure out how to get more out of our advertising efforts. There are so many different things that we can do that sometimes a lot of us waste a lot of our energy and money figuring things out and we don’t take advantage of the incredible power of the algorithm of Facebook, Instagram and these platforms that are giving us so much potential that we can capture. I want to talk to you guys about split testing today. This is the easiest and most effective way of finding out what works and what doesn’t work. It doesn’t have anything to do with you being romantic, with you feeling like you know how to write, with you feeling that you know better, that you know more than your audience. It has to do with understanding that Facebook can gather data faster than any human being can because they have systems, algorithms, and they have 2.4 billion people on the platform.

Just to have a quick chat about this, if you guys didn’t see because I haven’t done a podcast since. But, if you guys didn’t see Facebook’s numbers… as I am recording this right now, it’s Thursday. Ten days ago, Facebook reported its quarterly earnings. Trust me, I have been getting messages from students and from people saying, “Oh, Manuel. It’s pandemonium. The world is coming to an end. What are we going to do without Facebook? Facebook is going to stop working now. Nobody’s using it and people are leaving it in droves. What do you think we should do now?” I have been getting messages like that. Not from one person only but from several. My answer to them is, “Can you go and look at what Facebook reported as to their growth? Not only their growth, their incredible growth over the last 3 months.” They had some explosions that not even the wildest individual investor had thought about when it comes to user base, user growth, activity on the platform, average earnings per user.

To give you an example of this particular last metric how powerful it is, Facebook estimates in the United States an average earning per user of $37. Every single user is equal to $37 for Facebook. Just try to add 200 million users every single month, $37 on average per user. Internationally, that goes down a bit. You might be asking yourself now, “Wait for a second, isn’t Facebook free?” Yeah! We’re talking about the average earnings that they make per individual user because of what the users engage with and because of the advertisers that pay Facebook the money. That’s the whole ecosystem, right? That’s how it works. In the United States, it’s $37 per user. In the world, the world average is $7 per user. If you think about the incredible space that Facebook covers, it tells you how massive that is because they are in many third world countries that don’t have booming economies like Venezuela, like Mexico, and other places that their economies are not incredibly powerful like the ones that we have in the United States, Canada, United Kingdom, New Zealand, Australia, et cetera. Still, all these places that are using Facebook obsessively, very actively, 70% to 80% of the population, they are actually banging big time with them. They’re making a lot of money with them. It’s time for you guys to start paying attention and understand that these platforms are no longer a passing fad. They’re here to stay. It’s up to you whether you use them or not use them so you can get yourself to the next level because they are there ready to be exploited and for you to be able to capture that attention so you can expand your business. No matter what your business is.

 

Taking Advantage on the E-commerce World Through Facebook

I know that a lot of you guys that are listening to this podcast have very different business models. Some of you guys generate leads for your business whether you have insurance or a car agency, or whatever it is that you have going on, or you have the service like my dad, we have a NaturalSlim weight loss clinic across the world. No matter what it is, you have a particular model that can generate leads. Well, Facebook is a big-time platform for that. We are monsters at generating leads. Or, if you’re an e-commerce business, you should go back and look at my training on which I talk about how to take advantage of the e-commerce world through Facebook because it’s quite powerful. There’s an exact strategy and an exact system that works really well. It doesn’t have to do with just direct selling, but it does have to do with the top of the funnel and getting people through a process of like exposing them to a video, explaining your products and retargeting them with a particular image, infographic or whatever, and getting them into your shops, whether that’s Amazon or your own Shopify, Magento, Woocomerce, Bigcommerce, whatever that may be. 

Then, there are also service businesses, brick, and mortar businesses that want to drive traffic into their local stores. Guys, remember. It’s all about attention and Facebook has a lot of it. For example, if you were doing flyers for your brick and mortar business, nobody’s paying attention anymore. If you were doing media mail, nobody’s actually going over their media mail in an exciting way anymore. If you are doing email marketing, people are not opening up their emails like they used to anymore. If you used to do newspaper ads, I’ve got news for you – people are not subscribed to newspapers anymore, nobody reads them anymore. That’s the reality. If you were doing magazines, guys, they are full of dust. Nobody’s opening. You go to a doctor’s office, you go to a clinic, you see people on their phones. Just observe what’s going on. It’s not about being romantic about the way your business was built and the way you had to boom your business before and what worked in the past, it’s understanding what’s working today. 

If you have a business that is a local business then you have to understand that the way that you capture these people is through social media. If you look around, that’s where they’re at. Whether they’re in a restaurant, whether they’re driving, whether they are in a shop, whether they’re in a mall, whether they are walking around in their houses watching tv, they are consuming their cell phone devices. For example, people that are consuming television. Let’s say that they happen to be watching live TV. Do you know what they’re doing in between the next segment? They are consuming Facebook content. They are on Instagram. They are on YouTube. That’s what they’re doing. They could be on Twitter. The world has changed and we need to change with it. The idea that the world is going to go back to where it was is something that is going to stop you from being able to grow and expand. You’ve got to pay attention because the opportunity is there in front of you for you to grab it and run with it because it’s quite large. What are you waiting for? What reality are you waiting for in order for you to be able to expand your business, your brand, and take it to the next level? Do you know what I mean? 

Understand what’s going on today. Today, after that opening rant, again, if you have any doubts about what happened, just go to Google and search for Facebook quarterly reports and just look at their numbers. The stock jumped 18% overnight. It’s no strange reason why they are booming despite the scandals, Mark Zuckerberg being in Congress, all the attacks, all the different stupid campaigns to abandon Facebook because there are a lot of campaigns going on like “Delete Facebook, delete Facebook.” Do you know what those people that deleted Facebook did? They downloaded again. That’s what they did. If you are one of those, I’m sorry. You don’t have to confess but most of you guys that actually deleted the app came back to it because this is the reality, there’s no real competitor. Nobody else out there knows how to do this as well. They don’t know how to gather communities and get them to engage and communicate as well as they do. There’s no real option to replace Facebook at this time. There isn’t an option so people are coming back to it. For those of them that are too proud and refused to come back, well, that’s what we’ve got, we’ve got a 20% to 30% of the population not actively using the platform. That’s what we’ve got and we’re going to continue having that. The 70% of people that are active on the platform are more than you could ever dream to boom your business. Again, no matter what your business is.

 

Check Out My Mini-Courses!

Let’s talk about split testing. I want to tell you something really practical today. First off, if you have no idea what I’m talking about, you need to get started with some basic training. You can go to my mini-course sign up page which is a free training. Literally, if you haven’t done this training or you don’t know the basics then that will be your next step. manuelsuarez.com/minicourses will take you to a page in which you can sign up to get some mini-course training done on how to build your business with Facebook ads, how to find an audience, what is a strategy, how to create content. All those things are in those mini-courses so you can just get going and start doing something – how to create an ad, just so you can press go. If you don’t press go, nothing happens really. That will be the first step if you have not done that yet. If you like listening to me, if you like listening to my content, that’s great. But in the end, what I want you to do is to do some practical things behind it and start implementing some of these things so you can too, start seeing some results across your own advertising efforts. It does take time, it does take dedication, it does take energy. But, if you start doing it, you will start seeing yourself expand across these areas. Again, get that done, manuelsuarez.com/minicourses. If you already have the basics in, let’s talk about split testing now.

Let’s see what Facebook says about split testing. Number 1, how does it work? Your audience is divided into unique groups. Members of your audience are randomly divided into non-overlapping groups and see ad sets with identical creative. What does that mean? It means that you have an audience that is divided into groups that nobody else sees that same ad, they get separated. Three separate audiences or up to five separate audiences. Each ad set aka audience has one distinct difference also called a variable, one distinct difference. I don’t know about you but, I didn’t do really well in school, but I can tell you what a variable is. In mathematics, there’s one particular element that’s different in every single formula. On ads, on the Business Manager, every single thing is the same except that we have one variable. This could be the audience, it could also be the placement. Let’s say, for example, Instagram placement on the news feed, or Facebook placement on the newsfeed. It could also be a Messenger home placement. Placements, right? That could be a variable or it could also be an optimization method. You’re optimizing for conversions, or you’re optimizing for impressions, or you’re optimizing for reach. Whatever it is that you decide, that’s another variable. So, you’re going to have one variable to choose from. 

The most important one that I would recommend that you would go after on the split testing process is audience variable. Meaning that you’re giving them three or five different audiences so they can run this same ad and you’re going to find a winning ad, a winning audience. Once you find that, you take all the guesswork away. Now, you know what’s working and what’s not working. You can grab that winning ad, that winning audience and scale it. And, not only scale it, meaning going from $100 a day to now $200 a day, et cetera but also, you can use it to also now create audiences that are similar to that audience that you found as winners. For example, if you have a campaign running there with videos, and then you find the audience that’s the winner, and then you scale that audience. Now, you can create an audience that has consumed those videos on that campaign that was scaled and now you can create audiences that are similar. If you don’t know what I’m talking about, it’s called the lookalike audience. You can create a lookalike audience of website visitors, of people that consume your videos, of people that are liking your page, of people that engage with your page, of people that purchase your products, of your email list. You can create a lookalike audience of these people and have Facebook find you people that are like them. If you don’t know how to create this, we’re going to do a podcast of this on the future on the whole lookalike strategy. But you, for now, you can go to your Business Manager, business.facebook.com and you can go to the drop down menu and go to Audiences. Once you have an audience created of emails, phone numbers, website visitors, purchasers or any of these stuff, you can go ahead and create an audience that is called the lookalike audience by selecting what Facebook calls the seed audience. It’s the audience that they use to help you find people that are like that one. It means that they’re going to help you find people that have six common traits to the audience that you selected, your seed audience. That could be demographics, income levels, it could be socio-economic levels, interests, all kinds of different things that Facebook chooses to help you find people that are more likely to accomplish the actions that you are trying to accomplish overall. 

 

How Does Split Testing Work?

Your audience is divided into unique groups and this variable is tested – audience type, delivery optimization methods. Throughout the process, Facebook is going to distribute your budget across these different audiences and then, you’re going to find a winner. How does the performance gets measured? How do you compare it? Facebook says that the success of each ad set measured by your campaign objective is recorded and compared. The best performing ad set wins. Lowest cost per conversion, the most views at the lowest cost, it could be also the most engagement, the biggest Messenger subscribers. Whatever the result is that you’re looking for, that determines the winning ad set, that determines who’s the winner throughout this split test and you get a message from Facebook telling you who is the winner. You’ll get results. You’re going to be able to get results in two places. You can select the budget yourself. You can select $5 a day per ad set. You can select $20 per day per ad set. You can do a budget that distributes. For example, you can do $278 for the entire campaign and it’s going to split that evenly. 

Let’s look at a scenario here. Let’s say that your budget is $500 a day and you select the campaign. What you want to do is generate traffic to your website – people that are visiting your Amazon listing or people that are visiting your e-commerce site. That’s your objective. You want to send people directly to your website. What you do is you select Campaign Objective, Traffic. Now, what you do at the ad set level is once you selected, that you checked off the little box at the campaign level at the bottom of it, there’s going to be an option that says split test. You’ve got to check that off. Meaning that you are going to put a check on it to make sure that now it gets you to the whole split testing. At the next level which is the ad set level, you’re going to be able to create up to five variations of audiences. You can do two or you can do five. You can do all five of them and select independent unique audiences for each one. Let’s say for example, do you have a kitchen brand? You can go in there and select the demographic. Meaning 35 to 44 years old women. You can select in one of them, raise your rate. You can select in the other one Martin Stuart. You can select in the next one Top Chef. You can select in the next one et cetera. You get the idea, right? Every single one has a unique characteristic. It can be an audience that you’re selecting based on website visitors, or purchasers, or add to cart. There are many variations of what you can select there or even test our your own audiences like your own emails, your own purchasers, your own data that you have accumulated to find out where can you find the most return on your investment. So, once you select your five audiences,  you go to your final step and you select one ad that these people are now going to see. This ad can be a single image, a set of images that we call a Carousel, it could be a video, it could be a series of videos, it can be a number of different things and that same ad is going to be shown across those five audiences evenly, if you selected the even split, because the even split is something that you can select if you want to distribute the budget evenly across all five ad sets.

There’s another option that you can select which is basically going to be based on the size of the audience. So, if audience A has 100,000 people in it, and audience B has a million people in it, Facebook is going to send more money to audience B because that one has a million people. So, you can select even split or you can select budget distribution based on the actual size of the audience. Once the split test is done which you can run it from three days to up to 14 days, so you can run it for three days only or seven days or ten days up to a maximum of 14 days, then, you’re going to find out with an email from Facebook telling you who is the winning ad set, who’s the winner for you to be able to scale. Then, you’re also going to find out through the Business Manager at the ad set level is going to tell you with those stars who is the winning ad set. You’re going to be able to click on a button and create a whole new campaign with this winner. How’s that for making Facebook your partner? What does that mean? You guys should have gotten this by now. It means that you don’t have to be romantic about who you think will be interested in your product and who you think will not be interested in your product. You simply let Facebook do the work for you and help you find those winners.

Just as a point, a very important point. Keep in mind that Facebook wants you to win, they want you to win because, if they help you become successful, they get more money. If you don’t win, if you don’t get results, if you fail, then a couple of things happen, particularly two of them. Number one, you stop giving them money. You’re done. You don’t give them any money. They don’t get anymore of your hard-earned dollars. You stop doing it, you go back to media mail, you go back to buying billboards and wasting your money in other places. You don’t do it, right? Number two, if somebody, a friend, or an acquaintance ask this Facebook advertiser, “Hey, how are you doing with Facebook ads?” What do you think are they going to say? They’re going to say, “I’m sorry, but it sucked. I wasted all my money. I ended up losing all of it. I didn’t grow. Facebook didn’t work for me.” 

In reality, you know and I know what happened here. In reality, it’s you who didn’t work because Facebook is a source of attention and anything that is a source of attention, not even talking about a humongous source of attention like the one we’re talking about with Facebook is power all around it. You can gather that attention and turn it into business if you know what you’re doing. So, you better pay attention and do something with it because it works. The numbers don’t lie. Facebook is still growing by leaps and bounds. They just told us all about it last week. People are using Facebook more and not less. They’re staying more time in the platform for about 35 minutes every single day spend per user in the United States. The platform is being consumed in a large way. The demographics are there from 18 to 70-year-olds, they’re actually using the platform. Sure, you’re going to say, “But Manuel, SnapChat is actually the one that’s being used by 18-year-olds.” Sure! But, do you know, still, Facebook has millions and millions of 18-year-olds using the platform more than you could ever possibly service for your business if that is your niche market right there. 

There are more people that you could need. Whether you have a 65-year old and older service or you have a 20-year 24.19 old and younger service. They are there to be found so it is your job to find them. What I’m going to recommend that you guys do is you learn all about advertising on this platform that is going to help you capture attention so you can take your business to the next level because the opportunity is just getting started and split testing is a big part of that because it is a feature that Facebook has built into the system to give us, brands and advertisers, access to the incredible algorithm that they have built. So, they can now help you find winners, people that are performing so they can now give you results. And now, you can give them more money, you can spread the word about the incredible results that you’ve got on Facebook like I myself do every single day. I’m pretty crazy like that. We’re doing $600,000 on Facebook ads every single month. Why? Because I’m crazy? No! It’s because it works, we’re getting ROI, return on investment, we’re getting ROAS, return on ad spent. We’re doing it every single day in a large way and it’s only getting better and the opportunities are only getting larger. If you guys haven’t heard about it, WhatsApp can now be a source for you to develop traffic, too. You can through Facebook send traffic to WhatsApp and do a one on one services and sell people on things. Very shortly, you’re going to be able to build a whole Messenger channel on WhatsApp so you can now engage with people, send communications there and capture their attention so you can sell them things. It’s the power to the next degree. 

 

TAKE ACTION NOW

So, I want you guys to jump over that. If you haven’t done the mini-course training, make sure you do. If you haven’t joined my email list, make sure that you do because you also are going to be able to get a lot of value from it. Go to manuelsuarez.com, check out my blog, join my email list, make sure that you subscribe. I have a lot of articles pumping out every single day, a lot of valuable articles. I’m doing some incredible things in social media. You guys need to follow me whether it’s on Instagram, mrmanuelsuarez, theninjamarketer on Facebook, on YouTube also, theninjamarketer. Go, check on my content because I think that you guys are going to get a lot out of it. I know you’re doing it, you’re on social media. If you’re not, you might be like my dad. It’s fine. He’s not on social media himself. He’s making a lot of money with the social media but he doesn’t like to use it but he still goes in it to find out what’s going on and how people are engaging with his content. You should be on social media at least to learn how advertisers, successful people are doing it. Find some role models, people like me that are actually doing it every single day and learn from them, follow us and implement some of these things in your business. All right? So, that’s it for The Ninja Marketing Podcast today. In the Facebook Ninja Podcast, make sure that you do me a favor and do two things: write a review on the podcast. Let the world know what you think about it, if you’re getting any value from it, if my time here is actually providing energy for you and helping you be more successful. Number two, subscribe. It’s free and takes you about half of a second to do so. If you go to the podcast right now and you just pause it, or just literally go to the main page of the podcast and just hit subscribe is going to help me find more people. Help me do that, too. 

Guys, I will see you on the next podcast session. If you guys want to send me some feedback on areas that you’re having difficulties with, I would love to hear it from you. You can send me a message and I usually pay attention to them myself. I have social media staff. They help me. When they think I need to be answering a question, they can forward the message to me which I would tell them that whenever you guys send me feedback about content, areas that you want some help with, Facebook, Instagram, Messenger, WhatsApp, anything like that, marketing, advertising on them, send the questions in and I’ll surely include them into the content so I can give you even more value. Go to m.me/theninjamarketer and send me a message there and I will make sure that I will cover those subjects that are being asked for the most. 

You guys are awesome! Thanks for listening! Make sure you subscribe, okay? Talk to you soon.